Are you having second thoughts about making that home purchase? Perhaps, you feel you’re not ready for the obligations – financial and emotional – that come with it.
Well, want to hear a secret? It is normal to develop cold feet when looking to buy a house. Many people feel this same way – until they discover the benefits of homeownership.
That’s why to make the whole home buying process less scary for you we created this article on the benefits of homeownership.
Why is it important to buy a house in 2021?
1. Pride of homeownership
Ask any homeowner what they love most about owning a home, and they’ll tell you it’s the satisfaction of having a house to call their own.
Buying a house gives you a sense of pride. You just can’t compare that “this is mine” feeling to any other thing in the world. It’s no wonder why many see homeownership as the realization of the American dream.
You are the master of your piece of land. A landlord!
How many times have you sought the permission of your landlord about making a small renovation only to have them turn you down? You can say goodbye to such situations when you buy your own house.
Paint the rooms whatever color you want. Add any fixtures you want to the house. You may even choose to convert the basement to an extra room or tear down a wall to make more space – do anything you like.
Your options are limitless.
3. Income potential
Many people who have second thoughts about making their first home purchase usually wonder if it offers them any money-making opportunities.
Yes, it does.
Buying a house affords you various money-making opportunities that you can be put into good use – like, subsidize your mortgage loan or save up for a plan.
Here are the top two ways you can make money from owning a home:
- Airbnb: Airbnb hosts make an average of $924 a month. You, too, can benefit from this opportunity by listing your home on the online marketplace.
Offer a weekly or monthly discount rate to draw people looking for a short stay to your home and charge a small fee to refresh the space between guests.
However, before you go into it, remember to check your local laws before listing on Airbnb to ensure that you’re not breaking any rules. Some cities prohibit short-term rentals and are strict to enforce their rules.
- Rent out a room: It’s not uncommon to have a spare bedroom in a new home. Do you know what you can do with the room?
According to the U.S. Census Bureau data, Americans can earn an extra $174 billion annually if they rent out their spare bedrooms.
If you are not so big about privacy and prefer a long-term roommate, you can rent your spare bedroom out. Just ensure it is to someone reliable – perhaps a student or young professional.
Interestingly, this is only one of the many financial benefits of homeownership.
4. Get to build home equity
Want to know another financial benefit of homeownership? Home equity.
Home equity is a difference between the home market value and the amount you owe on the home. For example, if your mortgage loan is $300,000 and you’ve paid $150,000 of the principal, your equity is $150,000.
So, when you pay your monthly mortgage fee, you build up your home equity. And as the value of your home increases, the equity does too.
You can then use this equity to access the low-interest loan to pay medical bills, fund a business or improve your home.
5. Low-interest loan
Due to the pandemic, the federal reserve cut the federal funds rate. Do you know what that means? It means the interest rates on mortgage loans are at an all-time low since the 2008 financial crisis!
You can take advantage of the low interest rate to apply for a mortgage and buy a home this year. The benefit of this is that you get to pay off your mortgage loan sooner and at a much lesser amount.
6. Be part of a community
Once you buy a house in an area, you become a part of that community. And since homeowners greatly influence the community’s affairs, you get a say on vital issues like development, security, etc.
This aspect of homeownership is even more important if you’re nursing a political ambition. People will know and respect you more because you live in their neighborhood.
7. Future resale value
Back to the financial benefits of homeownership, properties have always had a great appreciation potential – and right now is no different.
According to a NAR study, home prices are expected to rise by 8.0% in 2021. This rise will continue by about 5.5% in 2022.
Going by this study, it is safe to say you will profit if you buy a house now and choose to sell later.
You’d agree that moving from one apartment to another every few years is stressful – physically and mentally. By buying a house, you no longer have to do that.
Also, if you have or plan to start a family, having a home is super important because children don’t enjoy moving. It leaves them struggling to find new friends in a new environment. So, give your (future) family the stability you wish you had as a kid by buying a house today.
Ready to buy a house?
Having an agent like Bost Redevelopment in your corner automatically increases your chances of getting your dream house.
Our expert team of real estate agents will provide all the support you need throughout the house buying process. We will use our network and connection to get you the house of your dream and negotiate with the seller for a favorable deal.
Want to talk more about your options? Please leave us a message below with your contact information and let us know how we can help you.